When the Invisible Hand Is at Work

question 26

Multiple Choice

When the invisible hand is at work,

• A)the price system will sometimes give incorrect cost signals to consumers.
• B)the price system will allocate resources based only on consumer need.
• C)all prices will be set equal to marginal costs.
• D)there will be some shortages and surpluses that cannot be avoided.

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Definitions:

Measure

To ascertain the size, amount, or degree of something typically with the use of instruments or tools designed for such purposes.

Acculturate

To adapt to or acquire the cultural traits or social patterns of another group.

Reside

To live, dwell, or inhabit a particular place or environment.

Regional Segmentation

A marketing strategy that divides the market into different geographical units such as countries, cities, or neighborhoods for targeted marketing.